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A.C. Nielsen S+P
An American market research institute with a German branch in Frankfurt am Main; specializes in commercial research. The Hamburg subsidiary, Nielsen Media Research (formerly ACNielsen Werbeforschung S+P) monitors the advertising market. It calculates and reports gross advertising revenues for the most important types of advertising and advertising media (television, general-readership and trade magazines, radio, billboards), broken down by business sector and product group, and by company and
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AGF
The Arbeitsgemeinschaft Fernsehforschung is a television research federation (members: ARD, ProSiebenSat.1 Media AG, RTL, ZDF and the stations they represent) that has commissioned GfK Fernsehforschung to gather data on television usage in
Germany. The advertising market recognizes this data as the standard for TV planning. The AGF licenses its data to other stations, agencies, advertisers and other data analysis organizations (e.g. Media Control). For further information (in German), see www.agf.de.
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Audience share
The time during which a station or broadcast or broadcasting time segment is watched, expressed as a percentage of total viewing time, either for all stations or all broadcasts, during a specified period.
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Cash flow, Cash flow per share
Cash flow indicates the financial surplus generated from ongoing business activities. It incorporates net income for the year, asset movements, and changes in accruals. To get cash flow per share, the cash flow is divided by the number of shares.
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Common stock
Stock that carries voting rights. At present
there are two holders of common stock in ProSiebenSat.1 Media AG: KirchMedia
GmbH & Co. KGaA and Axel Springer
Verlag AG.
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Corporate Governance
As of 2002, German law has included a number of new provisions for listed companies. These new regulations emphasize "corporate governance," a term for a company's entire system of internal and external mechanisms of review and supervision.
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Corporate sponsorship
An effective way for companies to show their social commitment. The ProSiebenSat.1 Group pursues all its corporate sponsorship activities under the slogan "Act don't protract." The top priority is on sponsorship to help develop media skills.
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Cross marketing
The interlinking of content from different communication tools, such as sponsoring, telepromotion, the Internet, teletext and event marketing, to create a unified brand presentation that generates added communication value for the brand.
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Declaration of Conformity
The draft Transparency and Disclosures
Act, adopted by the German government on February 6, 2002, implements recommendations from the Government Commission on Corporate Governance in the laws pertaining to stock corporations and financial reporting. The core of the new regulation is that it enacts as law the German code of conduct for the executive
boards and supervisory boards of companies listed on the stock exchange.
Accordingly, the executive board and supervisory board of any listed company will have to issue an annual "Declaration of Conformity" under Sec. 161 of the Corporations Act, reporting the extent to which the company adheres to the terms of the German Code. Any deviations from the code declarations must be explained to the public.
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Depreciation of programming assets
Each original showing of a program on television causes the asset involved to depreciate. "Unscheduled" depreciation of this type covers such assets as broadcasting rights to programs that are not shown.
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Digital television
Digital transmission technology enables images to be transmitted in highly compressed form, exactly like computer data. As a result, six to ten TV programs can be transmitted simultaneously over one digital channel, instead of the analog technique's limit
of one program per analog channel. The viewer needs a decoder to receive digital broadcasts. Digital television is not Pay TV. The German government
has ordered all television technology in Germany to be converted from analog to digital by 2010.
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Dividend
The earnings a stock corporation pays out for each share. Dividends are proposed
by the Executive Board and Supervisory Board, and are approved by the shareholders at the annual general meeting.
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Dividend yield
The dividend yield is obtained by dividing the dividend by the price per share, and then multiplying by 100. It represents the dividend payout as a percentage of a stock's market price.
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DVFA/SG
A key figure developed by the Deutsche Vereinigung für Finanzanalyse
und Assetmanagement, or DVFA (the German Association of Financial Analysts
and Asset Managers) and the Schmalenbach Gesellschaft - Gesellschaft
für Betriebswirtschaft, or SG (a German association for business
administration). It is intended to furnish as accurate a comparison between companies as possible. DVFA/SG earnings are based on net income for the year after adjustment for exceptional factors, and are usually expressed as an amount per share. In its
figures, ProSiebenSat.1 Media AG uses the latest calculation method specified by the DVFA/SG methods commission.
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EBIT
Earnings before interest and taxes. A ratio commonly used in the United
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EBITDA (Earnings before interests, taxes, depreciation and amortization)
Earnings before interest and taxes (EBIT) plus depreciation of fixed assets, and amortization of intangible assets and of current assets if the latter changes exceed normal levels. By adding depreciation and amortization an operative cash-flow is calculated that renders a picture of the company's earning power.
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EU Television Directive
The EU Television Directive of October 3, 1989, last amended in June 1997, defines the minimum standards for regulations governing German commercial television. It especially defines the terms pertaining to advertising in the State Broadcasting Treaty,
such as regulations on maximum time used for showing advertising or the number and placement of commercial breaks. German legislation may narrow the directive's terms or make them more precise, but not liberalize them.
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Eurobond
The ProSiebenSat.1 Eurobond was issued internationally in March 2001, for a total of EUR 400 million.
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Euvía Media
Through the acquisition of 48.4 percent of Euvía Media AG & Co. KG, since 2001 the ProSiebenSat.1 Group's business portfolio has included the transaction television segment. A further 48.5 percent of Euvía Media AG is held by H.O.T. Networks, and the
remaining three percent belongs to Euvía's CEO, Christiane zu Salm. Euvía holds full ownership of the Neun Live television station.
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Free TV
In contrast to Pay TV or public broadcasters, television programming that is available unencrypted, with no requirement for decoders or usage fees.
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FSF
Freiwillige Selbstkontrolle Fernsehen e.V., the German television industry's voluntary self-monitoring association, in Berlin. An organization founded in 1993 by the VPRT for the purpose of providing appropriate and insightful monitoring of programming, usually
before it is aired, so as to protect children and teenagers from the risk of endangerment, adverse influence, or social and/or ethical disorientation.
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GfK Fernsehforschung
A television research subsidiary of the consumer research association, GfK
Gesellschaft für Konsumforschung. Since 1985, GfK has used electronic measuring units to study television usage in German television households.
With 5,200 panel households in Germany - equivalent to about 71.67 million individuals over the age of three in television households - and usage measurements tailored to individual viewers, this is the largest and most accurate television audience research
panel in Europe. Since 2001 the panel includes viewers from other EU countries.
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Gross advertising spending
Gross advertising spending refers to what advertisers spend to show their
advertising, including agency commissions and bulk discounts. Production costs are not included. Gross advertising spending in Germany is surveyed by A.C. Nielsen Werbeforschung, and is calculated from the number of spots placed times the list
prices per showing.
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High yield bond
In July 2002, ProSiebenSat.1 Media AG issued a high yield bond on the international market. The issue total was EUR 200 million.
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Market capitalization
Market capitalization is the term for what a stock company is worth on the stock exchange, and is calculated by multiplying the current market price per share times the number of shares.
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Market share, TV
In television, the viewing time for a station or broadcast expressed as a percentage of total viewing time, either for all viewers or for specific target groups, during a specified period. TV market shares in Germany are calculated by the GfK Fernsehforschung
television research service.
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MDAX
As of January 1, 2003, the German stock market has been under new regulations, with a new indexing system and new a segment structure. Below the DAX index, the Frankfurt exchange's operator, Deutsche Börse, now categorizes stocks into conventional
sectors and technology sectors. The MDAX is for conventional sectors, and includes 50 companies. For inclusion in the MDAX a company must comply with the stricter transparency requirements for the Prime Standard segment, and achieve certain levels of market capitalization and trading volume. ProSiebenSat.1 Media AG remained a member of the MDAX after the new indexing system was introduced on March 24, 2003.
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Merchandising
In the film business, merchandising means the selling of products linked thematically to television or film productions. Merchandising products typically include textiles, books, video cassettes or DVDs, and sound recordings. Merchandising also includes trading
in licensing rights - the sale of the rights to use programs and protected brand names, symbols, characters or logos.
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Merger
The financial and legal amalgamation of two or more companies to form a single unit. Essentially, in a merger either one company absorbs another, or an entirely new company is founded to contain the merging entities.
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MHP (Multimedia Home Platform)
A technical standard for the reception of digital programming, agreed upon by public and private broadcasters and the state media authorities in September 2001. Viewers can use MHP decoders to receive all digital television channels, call up interactive applications associated with a channel, surf the Internet over the TV, and send e-mail.
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Net advertising spending
Net advertising spending represents the actual revenues collected by the media. The figures are published in May of each year by the ZAW (German Advertising Association), and are based on information provided by the stations. To calculate net advertising spending, agency commissions and bulk discounts are deducted from gross advertising spending.
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Net financial debt
The interest-bearing debt to banks or shareholders under loans, bonds or other debt instruments, less cash, bank deposits, short-term marketable securities, etc.
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Neun Live
Neun Live, operated by Neun Live Fernsehen GmbH & Co. KG, is wholly
owned by Euvía Media AG & Co. KG. Neun Live grew out of channel tm3,
and is a niche channel for live entertainment with interactive viewer participation.
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PCFR (price to cash flow ratio)
The PCFR is obtained by dividing a stock's market price per share by the cash flow per share.
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PER (price-earnings ratio)
A stock's price per share divided by its earnings per share. The PER represents a stock's market price as a multiple of DVFA/SG earnings, or in other words, how many times the earnings of a stock will fit into its price per share.
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Preferred stock
Unlike common stock, preferred
stock comes with special preferential
rights, such as the right to a higher
dividend. Voting rights are not normally
granted. The by-laws of ProSiebenSat.
1 Media AG require that each
preferred share must receive a dividend
distribution of EUR 0.02 more
than an common share.
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Prime Standard
On November 19, 2002, the board
of the Frankfurt Securities Exchange
adopted a new stock-market segmenting
structure for that exchange.
The restructuring, which took effect
on January 1, 2003, established two
segments for stocks and certificates
taking the place of stocks. The General
Standard segment comprises all
stocks that meet the minimum legal
requirements for the “official” or “regulated”
market. The new Prime Standard
segment carries uniform additional
obligations. Admission to the
Prime Standard segment entails meeting
the following transparency requirements:
quarterly reporting; compliance
with international accounting
standards, either IAS or US GAAP;
release of a corporate calendar of financial
events; at least one analysts’
conference per year; ad hoc disclosures
in both German and English.
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Prime time
The principal viewing period for the TV market. Prime time in Germany is generally between 8:00 and 11:00 PM.
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Programming assets
Programming assets comprise feature films, series and commissioned productions, as well as advance payments made. Feature films and series are considered programming assets as of the beginning of the license term; commissioned productions are capitalized as showable programming assets as of their completion, which is deemed to coincide with the date of acceptance.
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Restricted registered shares
Shares registered by name that can be transferred only with the company's consent. In compliance with German media law, the common stock of ProSiebenSat.1 Media AG is restricted and registered.
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Revolving credit facility
A loan agreement, generally entered into with multiple banks (a consortium), that grants a credit line for a fixed term that can be availed on a revolving basis.
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Semiometry
A method for the qualitative description of target audiences. It is based on the assumption that people's values can be mapped through the way they rate certain terms. The employed indicators are 210 words drawn from the analysis of fundamental
texts, and covering the spectrum of human feelings.
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SevenOne Intermedia
SevenOne Intermedia GmbH - formerly Kirch Intermedia GmbH - is the ProSiebenSat.1 Group's Multimedia Center of Competence. It covers the entire value chain in production, marketing, and the economic utilization of available rights for the ProSieben-
Sat.1 Group's station brands on all interactive platforms, including online, teletext, added-value telephone services, mobile phones and iTV.
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Split screen
The simultaneous broadcasting of advertising and a program. This has been allowed since the fourth Interstate Broadcasting Treaty took effect on April 1, 2002. The advertising must be visually clearly separated and identifiable. Irrespective of its size,
split-screen advertising counts toward the duration for spot advertising limits.
SevenOne Media applies splitscreening capabilities in a number of new forms of advertising.
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Sponsoring
A cooperative arrangement, usually between advertisers and the media. In television, sponsoring is a special form of advertising, an independent way of directly or indirectly financing a broadcast. At the beginning and/or end of every sponsored broadcast, a
mention of financing by the sponsor must be presented for a reasonable length of time (for example, "this show brought to you by …"). Unlike other special forms of advertising, sponsoring is subject to no time limits under German broadcast regulations. But program sponsoring is subject to its own set of regulations under the Interstate Treaty and the advertising guidelines of the state regulatory agencies for broadcasting.
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State regulatory agency for broadcasting
Each state in Germany has a supervisory authority that oversees all private radio and TV stations. The 15 state regulatory agencies for broadcasting license private broadcasters and monitor compliance with programming principles.
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Target audience
A segment of the population, chosen for specific characteristics, to whom a program or an advertising campaign is directed. The most commonly used criteria are socio-demographic: gender, age, education and income.
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Technical reach
The percentage of households that can receive a given channel. Television programs can be broadcast via antenna, by cable, or by satellite.
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Transmission channels
Television programs can be broadcast via antenna, by cable, or by satellite.
- Antenna: This classic, "terrestrial" form of reception is still used by barely seven percent of television households, and the trend is falling (figures as of March 1, 2003, source: AGF/GfK Fernsehforschung).
- Cable: Some 56 percent of television households are now connected to the cable network. The "head end" receives stations' signals via satellite and feeds them into the network.
- Satellite: The third and youngest transmission channel, using satellite dishes, reaches around 37 percent of all television households in Germany, with a rising trend.
The major communications satellites for television signal transmission in Europe are those of the ASTRA Group, Eutelsat and Kopernikus.
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Visit
In Internet terminology, a user's visit to the pages of a web site provider. A visit comprises all the different pages the user has viewed in immediate succession. It is the definition of a media contact for online services. The German advertising industry has agreed that a visit is considered over if no further access has occurred for the past 30 minutes.
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ZAW
The main federation of the German advertising industry: the Zentralverband der deutschen Werbewirtschaft e.V. in Bonn. As an umbrella federation of associations whose members are engaged in commercial advertising, the ZAW pools the industry's interests, represents them to the outside world, and annually compiles the net advertising spending figures for all forms of media. The association is concerned with all aspects of commercial advertising, with the intention of eliminating any need for government regulation of the advertising industry.
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